Coca-Cola is a carbonated soft drink sold in the stores, restaurants, and vending machines of more than 200 countries. It is produced by The Coca-Cola Company of Atlanta, Georgia, and is often referred to simply as Coke (a registered trademark of The Coca-Cola Company in the United States since March 27, 1994). Originally intended as a patent medicine when it was invented in the late 19th century by John Pemberton, Coca-Cola was bought out by businessman Asa Griggs Candler, whose marketing tactics led Coke to its dominance of the world soft-drink market throughout the 20th century.
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The company produced concentrate which is then sold to licensed Coca-Cola bottlers throughout to the world. The bottlers, who hold territorially exclusive contracts with the company, produce finished product in cans and bottles from the concentrate in combination with filtered water and sweeteners. The bottles then sell, distribute and merchandise Coca-Cola to retails stores and vending machines. Such bottlers include Coca-Cola Enterprises, which is the largest single Coca-Cola bottler in North America and Western Europe. The Coca-Cola Company also sells concentrate for soda fountains to major restaurant and food service distributor.
The Coca-Cola Company has, an occasion, introduce other cola drinks under the Coke brand name. The most common of these is Diet Coke, with others including Caffeine-Free Coca-Cola, Coca-Cola Cherry, Coca-Cola Zero, and special editions with lemon, lime, or coffee. (The Coca-Cola Company Profile, www.wikipedia.com, 2011)
Product and Services
The Coca-Cola Company sells the products form of soft drinks include beverage concentrates and syrups, with major beverage products. Business has more than 300 beverage brands all over the world with a major to be Coke, Fanta, Lift, Sprite, Frutopia 100% Fruit Juice, and Powerade. The Coca-Cola Company Beverages its packages into plastic bottles of sizes 2 liters, 1.25 liters, 600ml and 300ml. these are also available in aluminium cans of 375ml. Coca-Cola is the most well-known trademark, recognized by 94 percent of the world population. Business was very successful and has an excellent reputation. The price of Coca-Cola are various according to size, place, and packaging. Maybe if Coca-Cola sells in the school will have different price if the Coca-Cola sells in the bazaar or market, or if we compare the price of Coca-Cola in Indonesia will different in America. (My blog Dewi Irianty, 2011)
As information from Coca-Cola Amatil (CCA) Indonesia (Profile Company, www.Coca-Colaamatil.co.id, 2011) Coca-Cola Bottling Indonesia (CCBI) is a manufacturer and distributor of soft-drinks in Indonesia. We manufacture and distribute products licensed from The Coca-Cola Company. In addition to providing quality products and high standards, we also provide the best support services, both for our customer (distribution partners) as well as consumers. To support the best service, the CCBI provides the National Contact Center (NCC), a service center for customer and consumers throughout Indonesia. NCC serves as a medium for customers and consumers who need information or any services related to the Company and the products of Coca-Cola.
Services from the NCC include:
- Customer service which includes the request for a customers, refrigeration equipment, ordering products from both traditional and modern outlets, and other matters related to the distribution or sale
- Customer service which includes product information, product quality and packaging, products promotion and activities
- Frequently Asked Question which include the research, practice or internship and job vacancies the CCBI, request to visits to the factory CCBI, offering services and products for CCBI.
The suggest 90% of our customers prefer to buy of Coca-Cola in a cold state. To support increase sales growth and push the level of benefits to our customers, the role of Cold Drink Equipment (cooling equipment) becomes important. Therefore, we always to ensure that the Cold Drink Equipment that are in all our outlets to function properly and have an interesting view. One of the special program conducted by Coca-Cola Bottling Indonesia to realize that goal is to provide new services, RED desk for customers who already have a cooler of Coca-Cola.
Types of services available are:
- Receive and handle complaints of damage from the outlet of Cold Drink Equipment as well as the Sales Center
- Receive and handle request installation or withdrawal from the outlet of Cold Drink Equipment and Sales Center
- Answering question about the Cold Drink Equipment Services Coca-Cola
Why the Coca-Cola Company goes to International Business it because they want to spread the product all over the world, and people will know the product. Beside that reason, the Coca-Cola also wants to raise the revenue and it will affect the production and the production will up because the demand of the product is growth up too. It’s not about just the company get the advantage from this market, but the government will also get the revenue because The Coca-Cola Company do the export-import where there is a tax will raise the income of the government. The Coca-Cola Company is often appointed to be a sponsor of FIFA World Cup Football. Coca-Cola became sponsor of the World Cup almost every year held the World Cup including the 2010 World Cup. (www.google.com, www.scribd.com, 2011)
The differences between across countries and home country
The differences between across country and home country shown in the products they are produced. Each country have the different product although they have same name products, there are some products may be same. In Indonesia Coca-Cola Bottling Indonesia or Coca-Cola Company produced the products in the bottle with ordinary design and non-alcohol, it because in Indonesia the government not allowed it. But, in America they have extraordinary design with the different design every product. In Indonesia they don’t have a unique design like the product of America, and in America they have many products of Coca-Cola. This matter of concern is supposed to be the core differences between across country and home country. (Products list of Coca-Cola, www.thecoca-colacompany.co.id, 2011), (Product Coca-Cola, www.google.com, 2011)
To support their products The Coca-Cola Company has strategy to their products and their company, the strategy such as sales and marketing, manufacturing and distribution, and innovation. To support their sales and marketing, they designed many programs which are pointed to consumers and loyalty of their products.
Sales and Marketing
Various promotions designed not only to increase their sales and marketing, but also to continue improve their consumer satisfaction and loyalty of their products.
Serving Their Customers
Customer Service Center (CSC) is designed to continue improve their customer satisfaction and loyalty their products by providing superior levels of service to their customers based on their specific needs.
Area Marketing Contractor
Encourage by the company’s limited resources to cost-effectively service certain operating areas directly and strong commitment to create job opportunities in the informal sector, Coca-Cola Bottling Indonesia (CCBI) continue develops its product distribution system through small and medium-sized business in Indonesia. Under the system, CCBI works with two mains of third parties: Area Marketing Contractors known as AMCs, and street vending.
Serving their products
At Coca-Cola Bottling Indonesia, we are commits to providing their customers with a range of Cold Drink Equipment to support their business. From ice chests for kiosk, to electric coolers for retail outlets, vending machines and street vending, we lend these facilities to the customer at no cost, so they can sells Coca-Cola Products cold op their consumers.
Having partnership with many hotels, restaurants, and cafes, their give many great offerings through HoReCa programs. (The Coca-Cola Company sales and marketing, www.coca-colaamatil.co.id , 2011)
Manufacturing and Distribution
The production of all products sold and distributed by Coca-Cola Bottling Indonesia takes place in Indonesia. There are ten production plants located throughout Indonesia. Over the years, our plants in Indonesia have been awarded prizes from the Coca-Cola Company for attaining standards above those similar plants located in others part of the world.
All production plants meet and frequently exceed international standards and local regulatory requirements and undergo regular audits in the areas of quality control, environmental, health, and safety practices. Coca-Cola beverages products began as raw material and go through many stages as follows: Ingredients Preparations, Mixing, Washing, Filling & Capping, Coding, Inspection, Packaging, and Loading.
Coca-Cola will not only sell products to their customers but also give instructions on how to merchandise the product. Sales supervisors also regularly visit customers and provide advice and listen to any input that the customers may provide, it will be a great contribution to the company.
Overall sales and distribution policy is directed by the National Office, located in Cibitung, Bekasi, but the execution of the policy is carried out by well qualified and experienced regional and area operational managers and their staff. Apart from that, the bottling plants in Indonesia always welcome visitors who would like to know more about explore their hygienic and state-of-the-art production process.
Coca-Cola indicates their innovation through some continuance research and development activities. They try to develop Indonesia typical products. Moreover, many variations of packages and accessories are now easily found throughout Indonesia.
The reputation of Coca-Cola in Indonesia was only recognized as the large forces with main carbonated beverage company, now has changed become total beverage company in line with the production of fast non-carbonated beverage. It commenced from the issuance of Frestea, tea beverage, on the last June 2002. Now it becomes the second largest fast beverage product in Indonesia. Furthermore, Coca-Cola has marketed Sunfill Syrup and powder, and Ades mineral water outside Jabodetabek. In the meantime, the packaging field always updates its innovations. After the Refillable Glass Bottle, Frestea, Produced a couple years ago; it has been produced in more relax package last year (Tetra Wedge). It is believed to be easier and practice to bring. In the end of 2003, Coca-Cola, Sprite, and Fanta appeared in the tiny can package of 250ml. In addition, there is Glass Bottle which is light to 30% in its weight with a very tiny design but strong. Now it has started to market in Bali and for the near coming years will be marketing nationwide.
Innovation on selling facilities also developed continuously in order to meet the need of consumers and the current technology development. Some of us had to believe that Information Technology approach is really essential for every stands of company. Meanwhile, Coca-Cola bottling Indonesia has non-pollution materials. Besides increasing selling productivities, those new crates are expected to enhance the product of Coca-Cola in Indonesia.
These continuous innovations have proven which as one of the famous beverage company in the world, Coca-Cola wants to provide its best for the consumers. New idea has presented and continuous investments have made in order to become the best beverage company in the world. (The Coca-Cola Company manufacturing and distribution, www.coca-colaamatil.co.id , 2011)
The Coca-Cola Company tries to make new innovation to develop their products. In addition, more packages and interesting accessories are now easily found throughout Indonesia. The reputation The Coca-Cola Company in Indonesia which is previously recognize as the main carbonated beverage company, has now changed become total beverage company in line with the production of fast non-carbonated beverage. It commenced from the issuance o f Frestea, Tea Beverage, on the last June 2002. Now, it becomes the second largest fast beverage product in Indonesia. Furthermore, Coca-Cola has marketed Sun Fill syrup and Powder, and Ades mineral water outside Jabotabek.
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In the field of packaging, Coca-Cola always updates its innovation. After Refillable Glass Bottle, Frestea, produced a couple years ago; it has been produced a last year in more relax package (Tetra Wedge) which is easier and more practice to bring. In the end of 2003, Coca-Cola, Sprite, and Fanta appeared in the tiny can package of 250ml. In addition there is Glass Bottle which is light to 30% in its weight with a very tiny design but strong. Now it has started to market in Bali and for the near coming years will be marketed nationwide.
Innovation in selling facilities also developed continuously to meet the need of consumers and the current technology development. Coca-Cola Bottling Indonesia has non pollution materials. Besides increasing productivities, those new creates are expected to enhance the product of Coca-Cola Indonesia.
Those continuous innovations have proven that as one of the famous beverage company in the world, Coca-Cola wants to provide its best for the consumer. New idea has presented and continuous investments have made in order to become the best beverage company in the world. (The Coca-Cola innovation, www.coca-colaamatil.co.id , 2011)
Culture is a part of external influences that impact the consumer. That is culture represents influences that are imposed on the consumer by other individuals. The culture every country is different, not just about culture of country but the company has also culture for their company. To gain their business, The Coca-Cola Company focus in all aspect such as focus in product, commitment to people development, graduate trainee program, job vacancy and the others. To keep the quality of product The Coca-Cola Company always controls the products to not disappointing the consumer. The Coca-Cola Company also held the events for their employees such as games, party, etc. The Coca-Cola Company has commitment for their company to always keep the believing from the peoples. (Lars Perner, Ph.D, www.consumerpsychologist.co.id , 2011) (www.coca-colaamatil.co.id , 2011)
Analyzes of PESTEL (Political-Economical-Social-Technological-Environmental-Legal)
The non-alcoholic beverages falls in the category under the FDA and the government plays a role within the operation of manufacturing these products. For those companies that didn’t meet the standard requirement which have been set by law, an amount of fines shall be deemed.
The changes in laws and regulations, such as accounting standards, taxation requirements and environmental laws and foreign jurisdictions might affect the book of the company as well as their entry in foreign country. Apart from that, the changes in the nature of business as non-alcoholic beverages can gain competitive product and pricing pressures and the ability to improve or maintain the share in sales in global market as a result of action by competitors. An overview to the country internal markets and other governmental changes that affects their ability to penetrate the developing and emerging markets that involves the political and economic conditions. Indeed, Coca-cola always anticipates any changes in the political field and continuously monitoring the policies and regulations set by government. In the political variables, most of the things are related to Governmental activities. So, they don’t leave any good or bad impact in the Industry of coke.
The issue of recession and inflation rates may affect the industry of coke. Non-alcoholic and alcoholic beverages are also stands for good impact for a certain countries. Non-alcoholic beverages will stand better for Indonesia, Japan, Germany, and so on. On the other hand, alcoholic beverages will collect a high demand in USA, Australia, New Zealand, etc. It is supposed that economic have a negative impact to the demand of coca-cola products when the price changed because of recession and inflation. The economic situation of a country shall be strong in order to adapt to the economical changes.
Lifestyles and attitudes of the market are supposed to change in a lifetime. It is also observed that the overall content in this world is categorized as baby boomers. This will continue to affect the non-alcoholic beverage industry by increasing the demand overall and in the healthier beverages. The main result is the decreasing demand for the carbonated drinks and is going to pull down the revenue of coca-cola.
IT department is demanded to be the most functional field. This creates opportunities for new products and product improvements in terms of marketing and production. New products always come along with the advance of technology. Through computers coke can increase the efficiency of its business and can have up -to-date data about their productions. This will be a way to monitor the needs of consumer.
The Coca-Cola Company is providing consumers with simple moments of uniquely satisfying refreshment. The Coca-Cola Company work hard to infuse the environmental, health, and safety performance. Before The Coca-Cola Company discharge wastewater into a natural body of water, they treat that discharge water to a level capable of supporting fish life.
Recognizing that environmental, health, and safety issues change as our understanding of these issues grows, they have developed a comprehensive system that follows international standards (including ISO 14001) and complies with the prevailing laws and regulations. All plants are audited regularly and have solid environment health and safety practices – from waste management and reuse to occupational health and safety programs.
Beyond the satisfaction of doing the right thing, our responsibility goes to the Indonesian people whose lives touch every day, and that responsibility includes conducting their business in ways that protect environment and promote the health and safety of our employees at the work places.
PT. Coca-Cola Bottling Indonesia has commitment to always comprehend, prevent and reduce any negative impacts on environment due to its production process, to continuously provide high quality services and products to its customers and consumers, and to create a safe working environment. (The Coca-Cola Company environment, www.coca-colaamatil.co.id , 2011)
Legal aspect emphasizes on the effect of the national and world legislation. The industry of Coke receives all the rights applicable in the nature of their business. Every inventions and product developments are always going into the patented process led by governmental rules and regulations. This kind of legal approach leads to no highly negative impacts to industry of Coke as prescribed in Presidential decree.
Three Majors are very important from PESTEL
A few of economical crisis rises in many countries, especially underdeveloped and developing countries. Both categories seem not to have a strong economic level compared to developed countries. Inflation and recession will cause the economical situation of those countries to be unstable. Prices can be absurd and unaffordable. This will establish a pick from the demand which means stingy demand. The revenue of coca-cola industry will be decreased in many possible ways. In conclusion, the sales projection will be higher than realization. Bad reputation will then create another negative impact to the other fields of consequences.
The lifestyle, trends, and culture of each country are all different. The countries such as Indonesia, Japan, Germany, Fiji, Papua Guinea, are approaching “Sparkling beverages”, “still beverages”, but not “alcoholic beverages”. This means industry of coke have to determine their products distribution in a simultaneous way. Producing the non-alcoholic beverages in such countries mentioned above will be able to collect a vast number of demands. Producing alcoholic beverages will be only wasted and only produced in a limited number which resulting in higher prices than the other products. This condition may not be affecting a country such as USA and Australia. Both of them are multicultural and many products are acceptable in both countries. The only trouble is only the competitors such as Pepsi and Nestle.
Apart from all the other filed, technological do affect most industry even Coca-Cola company. By using technology advantages, most developed industries in the world are having the advancement of technology as the source of their success. The core benefits are information, marketplace, and products development.
Information always flows from the industry to the customers and vice versa. An industry is a physical form of conceptual plan. Every industry has to convert the source of information into data. The data can be accessed by customers in order to give reliable feedback to the industry itself. This will be the access point to the marketplace. Every country seems to have different tastes and needs. In this term, industry of coke can segment the market with potential demand. The potential demand may be differentiated into some categories. Meanwhile, the industry of Coke can do products development in order to fulfill the needs of consumer. This kind of monitoring session will bring up the flow into information again. Then, industry of Coke will have the updated information from customer again. Moreover, by the information received, industry of Coke can provide new information about their developed products and any promotion and details about the company.
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